By: Kim Jacobs, President and CEO at Community Capital New York
When launching a new business, entrepreneurs quickly learn that their personal credit history and score really matters. Lenders, landlords, insurers and vendors will be examining the business owner’s personal credit score to decide whether to do business with the company and to set interest rates. Even after five or more years of operations, many businesses will still be judged on the basis of the owner’s credit score. That is why we have been focusing on how to help business owners present the best personal credit profile possible. Furthermore, personal credit lays the foundation for establishing business credit.
Once launched, many business owners will want to build a strong credit profile for their businesses as well. To establish credit for the business, separate and apart from the owner, there are some steps that entrepreneurs can take:
- Establish a business bank account
- Get a phone in the business’ name
- Get a DUNS number for the business https://www.dnb.com/duns-number/get-a-duns.html
- Get a credit card in the business’ name
- Select vendors who report your payments and pay them early to maximize your score
- Monitor your business credit reports regularly to make sure they are accurate
It can take time to establish business credit but establishing a separate credit profile for your business can help save you money and open opportunities to grow the profitability of your business. Have questions? Feel free to call Rachael Dubin – our Senior Vice President of Lending at (914) 747-8020, ext. 118 or email firstname.lastname@example.org. We can help you get started today!